Chicago Agriculture Commodities Finished Lower

Chicago Agriculture Commodities Finished Lower


Chicago Board of Trade (CBOT) grains futures finished lower Wednesday, as US Department of Agriculture (USDA) boosted their outlook for Soybean, Corn and Wheat again.

The most active Corn contract for December delivery fell 8.5 cents, or 2.46%, to 3.37 bu.

December Wheat delivery dropped 10.5 cents, or 2.58%, to 3.9675 bu.

November Soybean fell 8.75 cents, or 0.92%, to 9.455 bu.

Corn production is also set for a record year and with plentiful domestic supplies of other crops such as Wheat and Rice, the US has become more reliant on export markets to absorb the bumper harvests.

A relief rally in Soybean futures after the latest monthly update was released Wednesday by USDA quickly fadeded, and Corn and Wheat prices both fell sharply.

US farmers are expected to harvest a record 4.269-B bu of Soybean, just shy of agriculture analysts’ expectations. The bump-up yield of 51.4 BPA following August rains was in line with trade guesses, with some concerned yields could top 52 BPA.

Corn futures sagged after an early gain, even as the USDA trimmed its production forecast from September. The agency expects production to reach a record 15.057-B bu on yields of 173.4 BPA this fall. That compares to analysts’ estimates for 15.04-B bu.

Wheat prices initially advanced after the USDA projected slightly smaller-than-expected U.S. stockpiles, before losing ground.

The USDA said domestic wheat reserves at the end of MY 2016-17 in May would total 1.138-B bu, which is up from its September estimate of 1.1-B bu but lower than analysts’ average guess of 1.151-B bu.

The USDA is Bullish export prospects, bumping up projected MY 2016-17 Soybean shipments by 40-M bu at the expense of Argentine sales.

Wheat-export expectations were raised by 25-M bu, reflecting sales success in North Africa that is taking share from European Union sellers, the USDA notes.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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